Whistleblower Lawsuit: Fannie Made Mess, Mishandled Money In Handling HAMP

The Center for Public Integrity reports:

• Fannie Mae executives bungled their stewardship of the federal government’s massive foreclosure-prevention campaign, creating a bureaucratic muddle characterized by “mismanagement and gross waste of public funds,” according to a whistleblower lawsuit by a former Fannie Mae executive and consultant.

• Caroline Herron, a former Fannie vice president who returned to the mortgage giant in 2009 as a high-level consultant, claims that the homeowner-relief effort was marred by delays, missteps and executives preoccupied with their institution’s short-term financial interests.

• “It appeared that Fannie Mae officers were focused on maximizing incentive payments available to Fannie Mae under various federal programs – even if this meant wasting taxpayer money and delaying the implementation of high-priority Treasury programs,” she claims in the lawsuit.

For more, see Whistleblower: Fannie Mae Bungled HAMP Anti-Foreclosure Program.

In related stories, see:

• National Public Radio: Consultant: Federal Aid Program Failing Homeowners,
• The Wall Street Journal: Fannie Mae Critic Sues Over Firing.

For the lawsuit, see Herron v. Fannie Mae, et al.